Chambal Fert. (CHAMBLFERT)

FairStock Score: 85/100 — HIGH CONVICTION

Score breakdown: P/E: 3/3 · ROCE: 2/2 · Growth: 1/2 · Dividend: 1/1

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I’m looking at Chambal Fert. as a Graham-style bargain candidate, but with Buffett’s insistence on quality. At ₹442.70 and a ₹17,737 Cr market cap, it trades at 9.20 times earnings and 1.70 times book, with book value of ₹260.11. The balance sheet is a standout: debt/equity is only 0.10, ROE is 21.93%, ROCE is 26.76%, and free cash flow is ₹2,133 Cr. Promoter holding of 60.85% aligns interests, and a 2.71% dividend yield pays me to wait. The Piotroski F-Score of 8/9 and Altman Z-Score of 4.26 suggest financial strength and low distress risk. The latest quarter showed ₹5,898 Cr sales and ₹586 Cr net profit, while profit growth was 10.27% even as sales fell 11.20%. That divergence deserves watching, but it shows pricing or cost resilience. The five-year revenue CAGR of 6.40% tells me this is not a fast grower. For a fertilizer business, I expect cyclicality; the 52-week range of ₹371.50–₹501.85 shows the market has already been volatile. Valuation is mixed: P/E 9.20, PEG 1.03, EV/EBITDA 1.61 and DCF intrinsic value ₹973.04 look attractive, but Graham Number ₹480.68 gives only 4.04% margin of safety. So I’m not getting a deep Graham discount; I’m getting a reasonably priced, financially strong cyclical with a FairStock Score of 85/100. I’d want revenue to stabilise and the DCF/Graham gap to narrow before calling it a fat pitch.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer